The Anti-Trust Act

Anti-Trust Act Fear is usually associated with dogs or drowning; however, the fear that over took America over a century ago was the fear of big companies . Big companies were a huge threat to American economy. Anti-Trust acts were initiated to dissolve and prevent monopolies from forming in America. A monopoly is when a company or a group of people get so powerful that they control the market of a specific product or industry. This issue started in America in the 1800s after the civil war; the American government was in tune to this problem and tries to stop it by passing the Antitrust Act. Congress passed the antirust acts of 1890 and 1914. America’s end goal is to have a free enterprising system, which is having limited government restrictions
In 1890 the Sherman Antitrust Act was initiated as the, “Protect[ion of] trade and commerce against unlawful restraints and monopolies”. The he federal government was allowed to get involved with this issue was because it was an interstate matter. The Sherman Act prohibits anticompetitive conduct on all American soil. Later, in 1914, the Clayton Antitrust was passed. This act was passed because congress was dealing with matters that fell right outside the scope of the Sherman Antitrust Act . This act extended the jurisdiction of congress by adding some key elements. One, it is unlawful to “discriminate in price between different purchasers of commodities, which commodities are sold for use… within the United States or any Territory…, where the effect of such discrimination may be to substantially lessen competition or tend to create a monopoly in any line of commerce”. Two, “that discrimination in price between purchasers of commodities on account of differences in the grade, quality, or quantity of the commodity sold, or that makes only due allowance for difference in the cost of selling or transportation, or discrimination in price in the same or different communities made in good faith to meet competition”. The Clayton Act has over twenty sections and each section contains the words “Action done to prevent or lesson competition” numerously in various ways. America wants
A monopoly means, taking over an industry by creating trusts or agreements with other smaller companies to ensure the prosperity of their own business. A monopoly conviction requires proof of the individual having the “intent to monopolize with the power and ability to monopolize, regardless of whether the individual actually exercised the power” . Congress wants to make sure that no monopoly will ever take place so as long as the person has the ability to make a monopoly, congress wants to stop them . This is done in various ways. One is called predatory pricing . This is when a company drops their prices so low, making the choice clear for consumers to buy from them, which causes a competing business to be destroyed due to lack of costumers. Another way of controlling the market is by price fixing . Price fixing is when a company or companies set and maintain a rate of their goods at a certain standard. Try arrangements are also prohibited; this is an agreement between a buyer and a seller . The seller will only give the buyer his purchase on condition that the buyer must buy other products from the seller or not buy certain products from another seller. Even firms have regulations. A firm cannot refuse to help another firm for the purpose of controlling the market . Many of the times, companies are only in trouble if there is a ruling of reason scrutiny; which means, if it is proven that a